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DeletedUser2
Guest
Great idea.
How are you finding these private investors? (real examples please... I've read the gurus' books but would love to hear the real, first person account from an expert like you). This is very valuable advice.
Here is how I have found private investors.
I ask.
I ask alot.
I ask in a certain way so that they come out of the wood work. (more on that below)
first off, go where people who are either retired, or have money go.
1. golf
2. investor groups,
3. expensive hobbie, (horses, boats)
second off.
NO MUDDY PAWS!!!!
have you ever seen a puppy come in from the rain and is just super excited to see you and RUNS up to you with muddy paws and just jumps all over you?
you know the ones...
ya, dont be that muddy puppy, with muddy paws to your investor.
when you meet one. DONT just ask for money. DONT say, I HAVE BEEN LOOKING FOR AN INVESTOR JUST LIKE YOU, WANNA SEE MY DEAL? HEY WANNA? WANNA SEE IT RIGHT NOW?????
ya, that's a muddy paws approach. dont do that.
investors, look for deals, or opportunities. and if they are looking their ears are tuned to it. so you just have to bait the hook with curiosity.
I ask in a certain way......
What I do is when people ask em about what im doing, or working on, I usually position myself in 2 sentences.
1. shock and awe.
2. identify your perfect customer, and what value you bring to them
Doing this, i raised alot of money from private investors for years.
here is an example.
when I was buying non performing notes from banks, people would ask, What do you do.
I would say,
" I rob banks"
(shock and awe, alot of laughs too.)
then i would follow up with teh second part and say
" Raise money from investors, and buy properties at 25% on the dollar, and make my investor good money with a secured deal"
that's it.
the thing is, I could say that in a crowded room, and the 2 people who "thought" of themselves as investors, would then seek me out, and say, hey, can I get in on that action?
it was amazing. by baiting the hook with what value you bring to them, you get them to come forward. the shock and awe part created a heightened sense of curiosity, and caught their attention, so when I delivered the second part, it was received and heard. and most of the time it got the response of, can you elaborate on that? which is a great invitation to give a 30 second elevator pitch.
By doing that one simple thing, I found investors every where. at parties, at family reunions, at bars, at dinners.
it was amazing.
I also ask in a different way. I network.
People I know who dont have money I have no problem saying, hey, im looking for 60K for a good little deal, know any one who is looking to make better money than at a bank?
and then I shut up. if people know others, they will volunteer them or put you in touch. if they dont, they wont. period.
It also helps that I have built up a lot of trust in my circle of friends over the years.
so when I ask if someone has 300K or 1M I can usually find 2-4 people pretty quick.
basically its a constant farming thing. you plant seeds, spend time with people and just keep them informed. I had 1 guy who took almost 3 yrs before he said, ok, I have been watching you, and Im in now.
but really, I have found private investors are everywhere. the real key.... is being the person who is worth being invested in.
work to become that, and you will never have a shortage of investors handing you money..
Sorry for the long ramble,
hope that helps
Z